In a world turning ever more global, consumption is no exception. Trends and consumer behaviours are becoming increasingly standardised, and the demand for ready-to-eat meals is growing.

While lifestyles, tastes and food products are becoming more and more similar across borders, there is also a growing demand for local and traditional foods. The high value of these products is linked to their protected and labelled origin or being grown organically.

The food and beverage industry is moving to satisfy demands from international consumers and to open new market opportunities by operating across borders and on multiple continents, becoming global players and brands.

Increased competitiveness
The industry is becoming more competitive as well. New mergers, acquisitions and alliances are forged to make production more cost-effective and to increase efficiency through synergies. Companies work to find, qualify and include new suppliers from new places to reduce costs. This global raw material sourcing strategy has led to increasingly intricate supply chains.

Operating with many new suppliers, producing in plants situated in different countries, and distributing products to retailers in a capillary manner creates a highly complex business model.

Chain reaction
Expanding your supply chain creates new risks and supply chain management challenges. For each link added, the more interlinked your brand becomes to the suppliers and partners with which you work.

Guaranteeing quality, safety and sustainability starts with the farmers, fishermen and growers and must be ensured at every stage thereafter by the food process industry, distributors, storage facilities and retailers all the way to the end product.

One incident can quickly trigger a chain reaction, harming the consumer and ultimately your brand. While on the other hand, evidence of sustainable performance can have the exact opposite effect. A company’s ability to be successful, competitive and responsible is only as strong as its weakest link.

Real time news
The number of media channels and other sources of information allow news to reach most corners of the world. Electronic technologies have made distribution practically instant. Consumers can follow breaking stories virtually in real time.

As a consequence, national and international food incidents are amplified. As brands involved are exposed from the start, the impact is serious and damages at times detrimental. Thus companies are challenged in new ways to manage their entire value chain.